Groupon vs eBay Which Is a Smarter Choice?

Groupon and eBay are two well-known companies in the e-commerce industry, but they offer different services to consumers. Groupon is a platform that offers deals and discounts on various products and services, while eBay is an online marketplace where individuals and businesses can buy and sell a wide range of goods. When comparing their stocks, it is important to consider factors such as revenue growth, profitability, and market trends. This analysis can help investors make informed decisions about where to allocate their capital for potential growth and returns.

Groupon or eBay?

When comparing Groupon and eBay, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Groupon and eBay.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Groupon has a dividend yield of -%, while eBay has a dividend yield of 1.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Groupon reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, eBay reports a 5-year dividend growth of 0.00% year and a payout ratio of 26.44%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Groupon P/E ratio at -12.89 and eBay's P/E ratio at 15.05. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Groupon P/B ratio is 11.53 while eBay's P/B ratio is 5.61.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Groupon has seen a 5-year revenue growth of -0.82%, while eBay's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Groupon's ROE at 1658.96% and eBay's ROE at 34.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.02 for Groupon and $61.97 for eBay. Over the past year, Groupon's prices ranged from $8.52 to $19.56, with a yearly change of 129.58%. eBay's prices fluctuated between $38.60 and $67.80, with a yearly change of 75.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.